RetireAustralia has started talking to potential buyers via adviser Jefferies Australia, say sources.
The understanding is while there is no information memorandum in the market or an actual sale process, possible acquirers have been told they will be given information about the business.
In recent months, Jefferies has been out in the market, talking to parties which might be buyers to determine the level of interest there would be for the business and at what price.
Private equity firms such as Kohlberg Kravis Roberts are being approached, along with Ares and other infrastructure players operating in the space, such as Lendlease and EQT.
The move comes after Goldman Sachs-advised Stonepeak last week swooped on New Zealand-listed retirement and aged care provider Arvida, offering $NZ1.3bn ($1.17bn). It offered the same amount some months back but was rejected.
Also up for sale is Aveo through Morgan Stanley and Barrenjoey, on behalf of owner Brookfield, with the asking price thought to be about $3bn.
RetireAustraila was previously on offer through E&P Corporate Advisory and Jarden Australia. It is half-owned by ASX-listed infrastructure owner Infratil.
The business is expected to have an asking price of about $1bn, with its book value around $900m. The retirement village operator has been put up for sale after it received approaches from suitors, sources say.
Private equity firm EQT paid $987m for Stockland Retirement Living earlier this year. The underbidders were Kohlberg Kravis Roberts and Blackstone.
RetireAustralia’s owners are understood to have been contemplating a sale for some time.
The business is the fifth-largest Australian retirement village service provider behind Lendlease, Stockland, Aveo and Retirement Villages Group. It owns and operates 28 retirement villages around Australia, along with a development pipeline.
JPMorgan and Morgan Stanley special situation funds sold RetireAustralia after they recapitalised it following challenges during the GFC.
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